John Hancock: Weekly Market Recap Week Ended December 24th
Sector outlook
Looking ahead to 2022, many Wall Street analysts have a positive view of four equity sectors: energy, communication services, information technology, and healthcare. Those were the sectors that had the highest percentages of “buy” ratings from analysts, as of December 20, according to FactSet. Those with the lowest percentages of buy ratings: consumer staples, utilities, financials, and real estate.
Growth adjustment
The U.S. government says economic growth last quarter was slightly stronger than it had estimated previously. In its final estimate released Wednesday, GDP growth in the third quarter was 2.3%, up from a previous estimate of 2.1%. By comparison, GDP accelerated at annual rates of 6.4% and 6.7% in the first and second quarters, respectively.
Spending slowdown
Spending by U.S. consumers grew at a slower rate in November than it did in October. The government reported on Thursday that spending rose 0.6% last month versus 1.4% in October. Economists attributed the slowdown in part to earlier holiday gift purchasing this year in anticipation of potential product shortages in November and December.
Quiet calendar
The final week of 2021 will be a light one in terms of economic reports. However, a report on home prices will be released on Tuesday, followed by pending home sales on Wednesday and weekly data on unemployment claims on Thursday. In the following week, watch for the government’s monthly employment report to come out on Friday, January 7.
Source: https://wmr.jhinvestments.com/